CHANGSHA - A suspect in the case of three children kidnapped and murdered in Central China's Hunan province last week was formally arrested on Sunday morning in the province's Yueyang county, said local procuratorial authorities.

The 33-year-old farmer surnamed Zhang was arrested on suspicion of the crimes against two girls and a boy aged eight to nine, said the Yueyang county People's Procuratorate.

Investigations found that Zhang, who was placed in police custody on Friday evening, had been in a dispute with his neighbor Zhang Nianyong, whose grandson and granddaughter he kidnapped.

At about 6 am on October 30, he is suspected to have lured the two along with another local girl to a car at a crossroads while they were on their way to board the school bus.

Zhang is accused of murdering the three children and burying them in Nanyuan village of the county's Gangkou township.

According to police, Zhang confessed to them that he kidnapped the children for money after he lost his fortune in business.

Zhang Nianyong said that the suspect had asked for a 900,000-yuan (about $147,780) ransom, according to the police.

The three children have been reburied after each of their families received 20,000 yuan and the promise of a total of 100,000 yuan from the government as compensation.